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Ligand Pharmaceuticals

Nasdaq:LGND
Snowflake Description

Solid track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGND
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. The last earnings update was 30 days ago. More info.


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  • Ligand Pharmaceuticals has significant price volatility in the past 3 months.
LGND Share Price and Events
7 Day Returns
-8.3%
NasdaqGM:LGND
6.3%
US Biotechs
12.6%
US Market
1 Year Returns
-46.9%
NasdaqGM:LGND
1.6%
US Biotechs
-9.1%
US Market
LGND Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ligand Pharmaceuticals (LGND) -8.3% -35.4% -37.5% -46.9% -36.9% -13.1%
US Biotechs 6.3% -7.9% -7.9% 1.6% 7.7% -8.8%
US Market 12.6% -16.7% -19.6% -9.1% 8.2% 21.5%
1 Year Return vs Industry and Market
  • LGND underperformed the Biotechs industry which returned 1.6% over the past year.
  • LGND underperformed the Market in United States of America which returned -9.1% over the past year.
Price Volatility
LGND
Industry
5yr Volatility vs Market

LGND Value

 Is Ligand Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ligand Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ligand Pharmaceuticals.

NasdaqGM:LGND Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:LGND
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.203 (1 + (1- 21%) (58.98%))
1.511
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.51
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.511 * 5.44%)
9.96%

Discounted Cash Flow Calculation for NasdaqGM:LGND using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ligand Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:LGND DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.96%)
2020 11.92 Analyst x1 10.84
2021 19.56 Analyst x1 16.18
2022 24.68 Analyst x1 18.56
2023 40.43 Analyst x1 27.65
2024 61.44 Analyst x1 38.21
2025 78.04 Est @ 27.03% 44.15
2026 93.22 Est @ 19.44% 47.95
2027 106.39 Est @ 14.13% 49.77
2028 117.47 Est @ 10.42% 49.98
2029 126.65 Est @ 7.81% 49.00
Present value of next 10 years cash flows $352.00
NasdaqGM:LGND DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $126.65 × (1 + 1.74%) ÷ (9.96% – 1.74%)
$1,567.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,567.43 ÷ (1 + 9.96%)10
$606.47
NasdaqGM:LGND Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $352.00 + $606.47
$958.47
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $958.47 / 16.51
$58.07
NasdaqGM:LGND Discount to Share Price
Calculation Result
Value per share (USD) From above. $58.07
Current discount Discount to share price of $66.79
= -1 x ($66.79 - $58.07) / $58.07
-15%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ligand Pharmaceuticals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ligand Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ligand Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:LGND PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $33.13
NasdaqGM:LGND Share Price ** NasdaqGM (2020-03-27) in USD $66.79
United States of America Biotechs Industry PE Ratio Median Figure of 37 Publicly-Listed Biotechs Companies 15.87x
United States of America Market PE Ratio Median Figure of 2,935 Publicly-Listed Companies 13.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ligand Pharmaceuticals.

NasdaqGM:LGND PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:LGND Share Price ÷ EPS (both in USD)

= 66.79 ÷ 33.13

2.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ligand Pharmaceuticals is good value based on earnings compared to the US Biotechs industry average.
  • Ligand Pharmaceuticals is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ligand Pharmaceuticals's expected growth come at a high price?
Raw Data
NasdaqGM:LGND PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-120.4%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 0.99x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1.03x

*Line of best fit is calculated by linear regression .

NasdaqGM:LGND PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.02x ÷ -120.4%

-0.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ligand Pharmaceuticals earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ligand Pharmaceuticals's assets?
Raw Data
NasdaqGM:LGND PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $45.61
NasdaqGM:LGND Share Price * NasdaqGM (2020-03-27) in USD $66.79
United States of America Biotechs Industry PB Ratio Median Figure of 428 Publicly-Listed Biotechs Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,145 Publicly-Listed Companies 1.27x
NasdaqGM:LGND PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:LGND Share Price ÷ Book Value per Share (both in USD)

= 66.79 ÷ 45.61

1.46x

* Primary Listing of Ligand Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ligand Pharmaceuticals is good value based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Ligand Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Ligand Pharmaceuticals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LGND Future Performance

 How is Ligand Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-120.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ligand Pharmaceuticals expected to grow at an attractive rate?
  • Ligand Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Ligand Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Ligand Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:LGND Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:LGND Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -120.4%
NasdaqGM:LGND Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.6%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:LGND Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:LGND Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 210 2
2023-12-31 178 2
2022-12-31 168 56 56 4
2021-12-31 146 21 24 5
2020-12-31 131 -14 13 5
2020-03-28
NasdaqGM:LGND Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 120 -29 629
2019-09-30 153 11 594
2019-06-30 174 44 677
2019-03-31 239 179 764
2018-12-31 251 194 143
2018-09-30 242 193 179
2018-06-30 230 193 120
2018-03-31 168 130 53
2017-12-31 141 89 13
2017-09-30 129 78 16
2017-06-30 117 69 9
2017-03-31 109 69 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ligand Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Ligand Pharmaceuticals's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:LGND Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Ligand Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LGND Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 3.37 4.80 1.93 2.00
2021-12-31 2.41 3.83 0.98 2.00
2020-12-31 2.44 2.44 2.44 1.00
2020-03-28
NasdaqGM:LGND Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 33.13
2019-09-30 29.77
2019-06-30 32.93
2019-03-31 36.45
2018-12-31 6.77
2018-09-30 8.45
2018-06-30 5.67
2018-03-31 2.50
2017-12-31 0.60
2017-09-30 0.78
2017-06-30 0.43
2017-03-31 -0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ligand Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ligand Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ligand Pharmaceuticals has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LGND Past Performance

  How has Ligand Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ligand Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ligand Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
  • Ligand Pharmaceuticals's 1-year earnings growth exceeds its 5-year average (339.1% vs 50.7%)
  • Ligand Pharmaceuticals's earnings growth has exceeded the US Biotechs industry average in the past year (339.1% vs 22%).
Earnings and Revenue History
Ligand Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ligand Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LGND Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 120.28 629.30 41.88 55.91
2019-09-30 152.87 594.19 42.77
2019-06-30 173.72 676.80 42.88
2019-03-31 238.78 764.38 41.18
2018-12-31 251.45 143.32 37.73 27.86
2018-09-30 242.33 178.79 34.32
2018-06-30 230.04 119.86 31.72
2018-03-31 167.99 52.76 28.97
2017-12-31 141.10 12.56 28.65 26.89
2017-09-30 128.82 16.44 27.70
2017-06-30 117.07 9.06 27.22
2017-03-31 108.59 -3.17 27.91
2016-12-31 108.97 -2.37 27.65
2016-09-30 91.98 7.10 27.05
2016-06-30 88.06 205.21 25.47
2016-03-31 86.96 234.95 25.45
2015-12-31 71.91 229.82 25.40
2015-09-30 73.72 230.54 23.71
2015-06-30 70.99 32.65 25.48
2015-03-31 63.18 10.68 23.49
2014-12-31 64.54 12.02 22.57
2014-09-30 56.28 6.84 21.47
2014-06-30 54.31 7.52 19.49
2014-03-31 53.28 9.63 18.55
2013-12-31 48.97 8.83 17.98
2013-09-30 47.87 9.55 17.77
2013-06-30 41.24 7.39 17.32
2013-03-31 37.40 -0.63 16.87

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ligand Pharmaceuticals made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Ligand Pharmaceuticals used its assets more efficiently than the US Biotechs industry average last year based on Return on Assets.
  • It is difficult to establish if Ligand Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ligand Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ligand Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LGND Health

 How is Ligand Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ligand Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ligand Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ligand Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ligand Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ligand Pharmaceuticals Company Filings, last reported 2 months ago.

NasdaqGM:LGND Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 767.23 638.96 1,069.87
2019-09-30 850.58 631.53 1,149.54
2019-06-30 1,041.45 651.30 1,392.43
2019-03-31 1,079.97 643.74 1,501.43
2018-12-31 560.91 636.30 773.83
2018-09-30 699.52 815.98 1,136.17
2018-06-30 619.81 806.28 1,016.72
2018-03-31 497.18 227.55 291.89
2017-12-31 418.65 224.53 201.66
2017-09-30 424.76 221.56 202.26
2017-06-30 409.41 218.63 172.63
2017-03-31 398.78 215.75 159.37
2016-12-31 370.85 212.91 141.05
2016-09-30 370.39 210.12 124.12
2016-06-30 364.44 207.36 106.95
2016-03-31 364.60 204.65 113.20
2015-12-31 276.91 201.99 200.22
2015-09-30 292.18 202.95 187.30
2015-06-30 69.05 200.57 181.61
2015-03-31 32.40 198.57 177.23
2014-12-31 24.41 195.91 167.34
2014-09-30 42.78 193.97 186.59
2014-06-30 63.09 2.70 22.03
2014-03-31 65.00 5.77 25.25
2013-12-31 49.61 9.11 15.98
2013-09-30 44.82 12.38 3.27
2013-06-30 39.27 15.57 5.92
2013-03-31 30.60 18.71 5.04
  • Ligand Pharmaceuticals's level of debt (83.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (799.9% vs 83.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Ligand Pharmaceuticals's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Ligand Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ligand Pharmaceuticals has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LGND Dividends

 What is Ligand Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ligand Pharmaceuticals dividends.
If you bought $2,000 of Ligand Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ligand Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ligand Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:LGND Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:LGND Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ligand Pharmaceuticals has not reported any payouts.
  • Unable to verify if Ligand Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ligand Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ligand Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ligand Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ligand Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ligand Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LGND Management

 What is the CEO of Ligand Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Higgins
COMPENSATION $6,306,803
AGE 49
TENURE AS CEO 13.2 years
CEO Bio

Mr. John L. Higgins has been the Chief Executive Officer at Ligand Pharmaceuticals Incorporated since January 16, 2007. He serves as the President and Chief Executive Officer of Moonstone Acquisition, Inc. Mr. Higgins serves as Chief Executive Officer of Ligand Pharmaceuticals Inc and President of Ligand Pharmaceuticals Inc at Metabasis Therapeutics, Inc. He served as the President of Ligand Pharmaceuticals Incorporated since January 16, 2007 until February 2, 2015. He has over 14 years of corporate development, financing, strategic planning, commercialization and investment banking experience in the Biopharmaceutical Industry. He served as Chief Financial Officer of Connetics Corporation from 1997 to December 2006 and served as its Executive Vice President of Finance, Administration and Corporate Development since January 2002 and Principal Accounting Officer until December 2006. During his tenure of nearly a decade at Connetics, Mr. Higgins played a key leadership role in numerous strategic initiatives including major acquisitions, divestitures, multiple product and technology licensing transactions and financings. He served as an Executive Vice President of Finance and Administration of Connetics Corp. from January 2000 to December 2001 and its Vice President of Finance and Administration from September 1997 to December 1999. Before joining Connetics, he served as Executive Vice President of Corporate Development at Biocryst Pharmaceuticals Inc. Before joining BioCryst in 1994, he served as a Member of the Healthcare Banking team at Dillon, Read & Co. Inc. He serves as the Chairman of CoMentis, Inc. He has been a Director of CoMentis, Inc. since January 2008 and Bio-Techne Corp. since May 19, 2009. He has been an Executive Director of Ligand Pharmaceuticals Incorporated since March 2007. He served as a Director of BioCryst Pharmaceuticals Inc. since May 2004 until May 2013. He has served on numerous public and private corporate boards. Mr. Higgins received A.B. Degree in economics from Colgate University in 1992.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ligand Pharmaceuticals management team in years:

5.2
Average Tenure
49
Average Age
  • The average tenure for the Ligand Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Higgins

TITLE
CEO & Executive Director
COMPENSATION
$6M
AGE
49
TENURE
13.2 yrs

Matt Foehr

TITLE
President & COO
COMPENSATION
$3M
AGE
46
TENURE
5.2 yrs

Matt Korenberg

TITLE
Executive VP of Finance & CFO
COMPENSATION
$3M
AGE
44
TENURE
4.6 yrs

Charles Berkman

TITLE
Senior VP
COMPENSATION
$2M
AGE
50
TENURE
12.9 yrs

Patrick O'Brien

TITLE
Senior Vice President of Investor Relations

Todd Pettingill

TITLE
Director of Corporate Development

Audrey Warfield-Graham

TITLE
Senior VP of Human Resources
TENURE
13.2 yrs

Keith Marschke

TITLE
Senior Vice President of Biology & Scientific Affairs
TENURE
2.2 yrs

Vince Antle

TITLE
Senior VP of Technical Operations - CAPTISOL
AGE
50
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Ligand Pharmaceuticals board of directors in years:

11.6
Average Tenure
58
Average Age
  • The average tenure for the Ligand Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

John Kozarich

TITLE
Independent Chairman
COMPENSATION
$363K
AGE
70
TENURE
13 yrs

John Higgins

TITLE
CEO & Executive Director
COMPENSATION
$6M
AGE
49
TENURE
13 yrs

Jason Aryeh

TITLE
Independent Director
COMPENSATION
$346K
AGE
51
TENURE
13.5 yrs

Todd Davis

TITLE
Independent Director
COMPENSATION
$343K
AGE
58
TENURE
13 yrs

Stephen Sabba

TITLE
Independent Director
COMPENSATION
$353K
AGE
60
TENURE
11.6 yrs

Shalendar Bhasin

TITLE
Scientific Advisor

Sunil Patel

TITLE
Independent Director
COMPENSATION
$338K
AGE
47
TENURE
9.4 yrs

John LaMattina

TITLE
Independent Director
COMPENSATION
$336K
AGE
69
TENURE
9.1 yrs

Nancy Gray

TITLE
Independent Director
COMPENSATION
$338K
AGE
59
TENURE
2.6 yrs

Sarah Boyce

TITLE
Director
AGE
47
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. Sep 19 Buy Matthew Korenberg Individual 03. Sep 19 03. Sep 19 500 $86.18 $43,091
05. Aug 19 Buy Todd Davis Individual 02. Aug 19 02. Aug 19 1,000 $93.59 $93,594
05. Aug 19 Buy Sunil Patel Individual 02. Aug 19 02. Aug 19 1,000 $95.98 $95,980
01. Aug 19 Sell Stephen Sabba Individual 31. Jul 19 31. Jul 19 -4,091 $94.45 $-386,395
31. Jul 19 Buy John Higgins Individual 31. Jul 19 31. Jul 19 1,850 $95.45 $176,583
31. May 19 Buy John Higgins Individual 31. May 19 31. May 19 1,000 $108.20 $108,202
14. May 19 Buy John Higgins Individual 14. May 19 14. May 19 2,500 $113.50 $283,750
X
Management checks
We assess Ligand Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ligand Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LGND News

Simply Wall St News

John Higgins Is The CEO & Executive Director of Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) And They Just Spent US$177k On Shares

View our latest analysis for Ligand Pharmaceuticals Ligand Pharmaceuticals Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Independent Director, Sunil Patel, sold US$3.7m worth of shares at a price of US$240 per share. … NasdaqGM:LGND Recent Insider Trading, August 5th 2019 Insider Ownership Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. … While recent transactions indicate confidence in Ligand Pharmaceuticals, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions.

Simply Wall St -

A Look At The Fair Value Of Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)

Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $35.6m $55.3m $76.5m $108.3m $135.2m $159.8m $181.5m $200.2m $216.3m $230.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 24.86% Est @ 18.22% Est @ 13.57% Est @ 10.32% Est @ 8.04% Est @ 6.45% Present Value ($, Millions) Discounted @ 11.46% $32.0 $44.5 $55.3 $70.1 $78.6 $83.3 $84.9 $84.1 $81.5 $77.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $692.2m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Ligand Pharmaceuticals Incorporated's (NASDAQ:LGND)

See our latest analysis for Ligand Pharmaceuticals How Does John Higgins's Compensation Compare With Similar Sized Companies? … Given the total loss of 17% over three years, many shareholders in Ligand Pharmaceuticals Incorporated are probably rather dissatisfied, to say the least. … We compared the total CEO remuneration paid by Ligand Pharmaceuticals Incorporated, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Is Ligand Pharmaceuticals Incorporated's (NASDAQ:LGND) ROE Of 71% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ligand Pharmaceuticals: 71% = US$764m ÷ US$1.1b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Ligand Pharmaceuticals's Debt And Its 71% Return On Equity While Ligand Pharmaceuticals does have some debt, with debt to equity of just 0.60, we wouldn't say debt is excessive. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Is Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) A Volatile Stock?

If you're interested in Ligand Pharmaceuticals Incorporated (NASDAQ:LGND), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. … What this means for you: Since Ligand Pharmaceuticals tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Who Has Been Selling Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Ligand Pharmaceuticals Incorporated (NASDAQ:LGND). … See our latest analysis for Ligand Pharmaceuticals The Last 12 Months Of Insider Transactions At Ligand Pharmaceuticals Over the last year, we can see that the biggest insider sale was by the Independent Director, Sunil Patel, for US$3.7m worth of shares, at about US$240 per share. … Insider Ownership of Ligand Pharmaceuticals For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

A Holistic Look At Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of LGND, it

Simply Wall St -

Introducing Ligand Pharmaceuticals (NASDAQ:LGND), A Stock That Climbed 99% In The Last Five Years

To wit, the Ligand Pharmaceuticals share price has climbed 99% in five years, easily topping the market return of 46% (ignoring dividends). … Over half a decade, Ligand Pharmaceuticals managed to grow its earnings per share at 73% a year. … Dive deeper into the earnings by checking this interactive graph of Ligand Pharmaceuticals's earnings, revenue and cash flow.

Simply Wall St -

Should You Worry About Ligand Pharmaceuticals Incorporated's (NASDAQ:LGND) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does John Higgins's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Ligand Pharmaceuticals Incorporated has a market cap of US$2.6b, and is paying total annual CEO compensation of US$5.5m.

Simply Wall St -

Should You Be Excited About Ligand Pharmaceuticals Incorporated's (NASDAQ:LGND) 26% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.26 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

LGND Company Info

Description

Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. The company’s commercial programs include Promacta, an oral medicine that increases the number of platelets in the blood; Kyprolis and Evomela, which are used to treat multiple myeloma; Baxdela, a captisol-enabled delafloxacin-IV for the treatment of acute bacterial skin and skin structure infections; Nexterone, a captisol-enabled formulation of amiodarone; Noxafil-IV, a captisol-enabled formulation of posaconazole for IV use; and Carnexiv, which is indicated as replacement therapy for oral carbamazepine formulations. It also offers bazedoxifene for the treatment of postmenopausal osteoporosis; Aziyo portfolio of commercial pericardial repair and CanGaroo envelope extracellular matrix products; Exemptia for autoimmune diseases; Vivitra for breast cancer; Minnebro for the treatment of hypertension; and Bryxta for non-small cell lung cancer. The company’s partners programs, which are in clinical development used for the treatment of cancer, seizure, diabetes, cardiovascular disease, muscle wasting, liver disease, and kidney, and other diseases. It is also developing a small molecule glucagon receptor antagonist for the treatment of Type 2 diabetes mellitus. In addition, the company is involved in the sale of Captisol materials. Ligand Pharmaceuticals Incorporated was founded in 1987 and is headquartered in San Diego, California.

Details
Name: Ligand Pharmaceuticals Incorporated
LGND
Exchange: NasdaqGM
Founded: 1987
$1,102,382,107
16,505,197
Website: http://www.ligand.com
Address: Ligand Pharmaceuticals Incorporated
3911 Sorrento Valley Boulevard,
Suite 110,
San Diego,
California, 92121,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM LGND Common Stock Nasdaq Global Market US USD 25. Nov 1994
DB LGDN Common Stock Deutsche Boerse AG DE EUR 25. Nov 1994
Number of employees
Current staff
Staff numbers
115
Ligand Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 01:40
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.